Archegos Capital Management owner Bill Hwang and the company’s former CFO Patrick Halligan were arrested in New York, the New York Times reported. The reason for this arrest is the collapse of the “family office” last year.
NOW claims the arrests were made in the homes of all former Archegos officials and are expected to be in court this Wednesday.
The two are accused of conspiracy and fraud as a result of a plan to manipulate the stock prices of listed companies to boost earnings. According to data collected by NYT, this plan has helped the company’s portfolio rise from $ 1.5 billion to $ 35 billion in one year.
The collapse of Archegos last year had a $ 10 billion impact on global banking. This case was the subject of several investigations by both federal agents and the SEC, the U.S. market regulator.